By Harry Boxer, The Technical Trader
The indices today ended mixed with strength in the Nasdaq. The day started out with a gap down, and quickly reached the lows for the day within a few minutes. They backed and filled and then had a very sharp move after the better than expected ISM data report came out around 10 o'clock. They then got a mid-morning back-off, and then another rally that took them to new highs at key overhead resistance just under 1200 NDX and 830 S&P 500. A sharp pullback took out the earlier pullback lows but held the earlier gap lows intraday, and then the indices had a strong late surge that slightly took out overhead resistance but failed to follow through, and then they backed off into the close.
Net on the day the Dow was down 64, the S&P 500 down 0.44, and the Nasdaq 100 up 15.50.The SOX index advanced 2.20
The technicals were mixed -- lower on New York and higher on Nasdaq. Advance-declines were about 300 lower on New York and about 200 higher on Nasdaq. Up/down volume was 7 to 5 negative on New York on total volume of over 1.3 billion. Nasdaq traded about 2 billion shares and had a little less than 2 to 1 positive volume ratio.
TheTechTrader.com board was mostly narrowly mixed, but there were some point-plus gainers and losers. Apple (AAPL) was up 1.38 to 91.51, and Hartford Financial Services (HIG) at 15.12 gained 1.96. Those were the only point-plus gainers on our board today.
On the downside, SunPower (SPWR) lost 1.68 to 31.88, Sequenom (SQNM) gave back 1.80 to 20.36, and DryShips (DRYS) had a horrendous session, closing at 4.89, down 1.74 on more than 30 million traded. That stock's been hammered from 14.50 just two weeks ago to today’s low at 4.70!.
Energy Conversion Devices (ENER) dropped. 1.16 and Potash (POT) 1.18. Those were the only point-plus losers on our board.
Stepping back and reviewing the hourly chart patterns, a promising bottoming formation over the last two days has been put in by the Nasdaq 100, but overhead resistance in the 1200-03 range needs to be taken out. That's the level we'll be watching closely tomorrow.
On the S&P 500, lateral price resistance around 830-31 zone was tested, but failed to be taken out as well, and that's the level we'll be watching for tomorrow.
We'll also be watching support at the mid-day lows at 1180 NDX and 816-17 SPX.
Good trading!
Harry
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